Gesellian currencies in the Euro Area

I have believed for a while that the issuance of gesellian-style national currencies, in parallel with the euro (euro-franc, euro-drachma, etc) issued by finance ministries, would be a way of getting out of the Euro Area crisis – but it may be too late by now.

The idea is the following : increasing the quantity of means of payment by a fixed overall amount, through a permanent increase and replacement of the existing currency units. That would stimulate transactions without flooding the economy with money.

By giving money to every citizen (less to children if you want) through a kind of basic income scheme, amounting to X per day/month/year in total, one can target a quantity of additional money Q in the future not to exceed, by setting a rate of (daily/monthly/yearly) depreciation/stamping S such that :
S = X / Q

In the case of France, it would be fair to assume Q = €500bn (roughly 25% of GDP), X = €12bn per month, so that S = 2.4% depreciation per month. €12bn in total means slightly less than €200 per person on average. That is quite significant, as it would increase

Another way to inject the money is through more classical spending, and why not use it to increase wages and pensions, and allow citizens to pay a part of their taxes with it.


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